First US bitcoin ETF loses record amount in its initial year

Understand your risk versus reward, only put in what you can afford to lose and use strategies such as dollar-cost averaging to combat choppy price action, he said. Ross also said now is a good time to educate yourself on cryptocurrency if you’re interested in investing in it someday. On Monday, cryptocurrency lending firm Celsius paused all account withdrawals, stoking fears it will soon close. Some of the price action in cryptocurrencies is due to recent failings of companies such as Terra and Celsius. Bitcoin has plunged more than 52% year to date and is now hovering around $21,000 per coin, according to data from Coindesk.

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• Nissan has faced significant hurdles over the last 12 months, and might not have much time to fix things.
• As Thomson writes, one key piece of evidence is that “in the dot-com bubble, public investors got hosed.
• Overall, 2022 proved to be the worst year in Tesla stock’s history, with a 65 percent annual decline totaling around $700 billion of market valuation now vanished.
• To be sure, the dip in price doesn’t mean than long-term investors should hold off on buying bitcoin, especially if they see a deal in the asset.
• Earlier this year Jeff Dorman, chief investment officer at asset management firm Arca, said that “Bitcoin .

Some of that may be because of shifting expectations for what the Federal Reserve will do with interest rates, but it’s also still a signal that investors globally still have some trepidation about the United States. The value of the U.S. dollar also sank in another signal of diminishing faith in the United States as a safe haven for investors. On April 9, Trump announced on social media a “90-day PAUSE” for most of the tariffs he’d announced a week earlier, except those against China. Trump appeared in the Rose Garden on April 2 and announced steeper-than-expected tariffs on almost all U.S. trade partners.

In the US, Nissan actually saw its sales increase in 2024, up 5.4 percent compared to 2023. However, the automaker had to ask dealers to sell cars at a loss, which sent dealer profits off a cliff. It even reduced Rogue production last September due to bloated inventories, and now, the brand’s best-selling model is cheaper for 2025. ProShares said in a statement that “since launch, BITO has closely tracked bitcoin, which is what we believe our shareholders want from the fund”.

The S&P 500 Index this week fell in bear market territory, defined as a drop of at least 20% from the most recent high. While consumer sentiment has weakened – it has fallen for five straight months by one measure — what investors call “hard data,” such as employment numbers, indicate the economy is still doing OK. Recent data show employers added 177,000 jobs in April and that inflation has cooled. At the time of the BITO launch, ProShares chief executive Michael Sapir said it was a milestone for the $8.4tn ETF industry, on a par with the first US equity fund in 1993, the first fixed income fund in 2002 and the first gold fund in 2004. BITO’s wildly anticipated launch helped push the price of bitcoin from $63,000 on launch day to record highs close to $70,000.

Has completely lost its narrative — it is not an inflation hedge, it is not uncorrelated to other assets and it does not act defensively”. “We’ve seen funds nosedive right out of the gate in this manner, but rarely do they attract so much in assets so soon after launching like this did,” said Jeffrey Ptak, chief ratings officer at Morningstar Research Services. Its 70 per cent share price drop also makes this the sixth-worst performing debut ETF of its kind of all time, in a test for investors during what has become known as the “crypto winter”.

Ours is, at the very least, a lethargic economy where monopolistic tech giants and their various ecosystems of clients thrive. The audited financial statements revealed interest payments to banks on excess reserves parked at the Fed hit a record $176.8 billion last year, almost triple the amount paid in 2022. Compared to 2022 when the central bank brought in a net income of $58.8 billion, that’s a major drop. Musk may not have been the only fortune loser in 2022, but the man with the most to lose lost the most.

“Those are prudent things that advisors should be doing with their clients, and we should be expressing to the average investor to take advantage of some of this ridiculous volatility,” said Ross. “What you see now with this selloff, this drawdown, is just a lot of excess in the space that needed to be cut,” said Tyrone Ross, CEO and co-founder of Turnqey Labs, Inc. That figure comes from Forbes’ estimate — actually on the low end, with Bloomberg putting it as high as $200 billion — which amounts to a 57 percent decline, down from $320 billion in November to “just” $138 billion earlier this month. Elon Musk is now officially a Guinness World Record holder… for the most amount of money a single human has lost, ever.

Plenty of profits

Musk’s huge losses have come off the back of his recent purchase of social-networking giant Twitter – which he bought for $44 billion in October last year. The head of the French company owns Louis Vuitton and has an estimated net worth of $190 billion. In August, Musk sold nearly $7 billion worth of Tesla shares ahead of his acquisition of Twitter. Tesla shares, responsible for most of Musk’s wealth, plummeted last year, dropping more than 65% in 2022. Even if you don’t think we are in a tech bubble, the alternative would still be just as concerning.

Elon Musk Just Set a New World Record: Most Money Lost, Ever

The major reason for the plunge was a decline in share prices of the electric automaker Tesla, probably the best known of Musk’s portfolio of companies. One year after its record-breaking launch, the world’s first exchange traded fund tracking the price of bitcoin has lost more of investors’ dollars than any other ETF debut. The largest annual loss ever reported by a publicly traded company is $98.7 bn (£59.6 bn), posted for the year 2002 by media conglomerate AOL/Time Warner (USA) on 30 January 2003.

Conditions appeared dire for the stock market in early April

“This wouldn’t be a good entry point now,” said Johnson, adding that the one exception would be investors with very long time horizons and who are dollar-cost averaging into the asset, similar to how people invest with a 401(k) plan. Given today’s macroeconomic environment, with the Federal Reserve tightening interest rates to stave off high inflation, some crypto investors think prices may fall further. Companies are also preparing for a recession and possible “crypto winter,” or when prices fall and stay low for an extended period.

Apple Lost the Most Money In History In One Day, Still Worth $2 Trillion

Tesla CEO Elon Musk has broken a record for the largest amount of money lost by one person, according to Guinness World Records. Even as companies have delivered fatter profits than expected, many have also warned they’re unsure about what lies ahead. CEOs have been either lowering or withdrawing their financial forecasts for the year given all the uncertainty around how Trump’s tariffs will end up. Other ETFs have fallen further in their first year, but they have all been far smaller. The Global X Blockchain ETF (BKCH) — another crypto-related fund — plummeted 76.7 per cent in its first year of operation to July, but it peaked at $125mn of assets and now holds just $60mn.

Asset manager ProShares launched its Bitcoin Strategy fund in October 2021, and it immediately became the most successful new ETF in history, amassing more than $1bn in its first week of trading on the New York Stock Exchange. However, a November report from the St. Louis Fed estimates the central bank will carry this deferred asset until mid-2027, which means it’ll be a few years before it can return profits to the government. When there’s a shortfall in earnings, the Fed uses a deferred asset, which essentially works as an IOU by the Fed to itself, to fund operations. So, when the central bank becomes profitable once more, it can divert the excess earnings to pay down the deferred asset until it reaches zero. “I don’t think the rules really change here; if you’re a believer in bitcoin, then you might see this as a great opportunity,” Boneparth, adding that’s the same as investing in other assets.

But he couldn’t ignore the signs of trouble in the bond and foreign exchange markets. Nissan is saying the right things to excite enthusiasts, but few brands can survive on hardcore fans alone. While Espinosa might drive a Z to work, the company needs a fresher lineup to remain competitive. Sales for its cheapest products, like the Versa, are exploding as prices rise and the American government implements sweeping tariffs on the auto industry, which might be one of the few positives for Nissan right now.

How Much Elon Musk Is Worth Today

• But he couldn’t ignore the signs of trouble in the bond and foreign exchange markets.
• Musk’s huge losses have come off the back of his recent purchase of social-networking giant Twitter – which he bought for $44 billion in October last year.
• The CEO tried to alleviate his losses by vigorously unloading billions of dollars worth of his Tesla shares, but evidently that wasn’t enough to prevent him from landing in the record books.
• The previous CEO’s turnaround plan failed to materialize as intended, culminating in a failed merger with Honda in February that resulted in the company replacing Makoto Uchida with Ivan Espinosa.
• Trump appeared in the Rose Garden on April 2 and announced steeper-than-expected tariffs on almost all U.S. trade partners.

He especially targeted China, eventually raising the duties on imports from China to 145%. Buyers “remained extremely loyal to the long-term thesis for bitcoin”, said Todd Rosenbluth, head of research at consultancy VettaFi, with net inflows of $87mn into BITO in the past six months despite the price crash. But in November last year, it became clear that US interest rates would start to push higher, hammering speculative assets. The ETF has tracked the 69 per cent slide in bitcoin itself while the cost of maintaining the futures contracts on which it relies has also eaten into its profits. Investors have slowly regained their appetite for risk after President Trump’s “Liberation Day” tariff announcement in early April prompted one of the worst stock sell-offs in decades. A slew of solid earnings reports and hope for tariff relief have helped the S&P 500 rise nearly 8.7% in the last eight sessions, its biggest rally of that length since November 2020 when stocks were buoyed by the completion of Covid-19 vaccines.

He also points to the fact that enterprise tech (business-to-business operations), not consumer tech, is doing well and securing most of the profits and securing sustainable growth. His net worth plummet of $182 billion since November last year has now made the controversial business magnate the record holder for the “largest loss of personal fortune in history.” At the same loses record amount in its year time, the loss cost Musk another record, that of world’s richest man—at least temporarily. Elon Musk holds the prize for “largest loss of personal fortune,” according to Guinness World Records, and he may be in no danger of having to give it back anytime soon. However, his fortunes have improved considerably in the years since, making him the world’s richest individual that we know of—and by far.